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Friday evening business bulletin
More retailers today succumbed to the dire trading conditions being seen on the high street amid gloomy news of company administrations and poor sales figures.
Curtains and furnishings firm Rosebys went into administration today, while Savile Row tailor and former dressmaker to the Queen Hardy Amies announced it was fighting for survival.
Reports suggested that furniture retailer MFI was also battling to secure its future.
And sales declines at retail chains John Lewis and JJB Sports added to the misery.
John Lewis, seen as a bellwether of the industry, gave the sector a particular shock after it confirmed that the financial turmoil had knocked consumer confidence for six.
Sales across its 27 department stores fell by 5.6% in the week to September 20, while its grocery chain Waitrose saw sales growth grind to a halt.
Its home division suffered the most, with sales off 14% as the housing market slowdown continues.
JJB Sports lost more than half its market value today after worse than expected results fuelled worries about its finances.
Shares were down 60% after JJB axed its half-year dividend and interim losses of £9.7 million led City analysts to slash full-year forecasts.
JJB was also forced to refute claims that it was in breach of a covenant relating to a £15 million banking facility with Bank of Scotland.
Investors were earlier spooked by company auditor Deloitte & Touche’s view in the results that there were ``material uncertainties which may cast significant doubt about the group’s ability to continue as a going concern".
Chief executive Chris Ronnie insisted that management would stay ``calm and focused" as it faced up to deteriorating trading conditions.
Mr Ronnie added: ``Whilst we remain extremely cautious about the current economic climate, we are absolutely convinced that our business model is right."
The company is in the early stages of a restructuring programme after Mr Ronnie and Icelandic investor Exista acquired a 29% stake in JJB from founder David Whelan last year.
Savile Row tailor and former dressmaker to the Queen Hardy Amies said today it may go into administration after failing to secure vital funding from a major shareholder.
The group, founded in 1946 by the late Sir Hardy Amies, suspended its shares ``pending clarification of the company’s financial position" and confirmed it was now considering all options - including administration.
Hardy Amies was granted a royal warrant in 1955.
It said it had been left without the cash needed to fund its working capital after major shareholder Arev Brands Limited (ABL) was unable to meet a request for further funds.
The pound at 4:30pm was US$1.8407 compared to US$1.8411 at the previous close while the euro at 4:30pm was £0.7932 compared to £0.7952 at the previous close.
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